Non-Compete Agreements for Roofing Reps: What Actually Holds Up

Most roofing company owners sign their reps to non-compete agreements thinking it protects territory. Most of those agreements are either unenforceable or only partially enforceable. This is what actually works.

Non-Compete vs Non-Solicit: Know the Difference

Non-compete: rep cannot work for a competing roofing company (or start one) within a geographic area for a time period after leaving.

Non-solicit: rep cannot contact your specific customers or recruit your specific employees for a time period, regardless of where they work.

Non-solicits hold up in nearly every state. Non-competes are a coin flip depending on jurisdiction.

State by State: Where Non-Competes Stand

California: Banned

Bus. & Prof. Code section 16600 voids non-competes entirely for employees. Do not try to write one. Courts have found employers liable for even requiring employees to sign unenforceable non-competes.

Use non-solicits instead. Those are enforceable for customer relationships developed using company resources.

Texas: Narrow Enforcement

Texas Business and Commerce Code section 15.50 allows non-competes if:

• Ancillary to an otherwise enforceable agreement (like an employment contract with real consideration)
• Reasonable in time (1 year typical, 2 years max for sales roles)
• Reasonable in geography (county or contiguous counties, not statewide)
• Reasonable in scope (residential roofing, not all construction)

Courts reform overbroad agreements rather than voiding them, but damages require proof the rep took confidential info.

Florida: 2 Years Enforceable

Florida Statute 542.335 is employer-friendly. 2-year non-competes for sales reps routinely enforced. Must protect a legitimate business interest (customer relationships, training investment, confidential info).

Colorado: 2022 Rewrite

As of 2022, Colorado voids most non-competes for employees earning under $112,500 per year. Sales reps earning above that threshold can be bound. Customer non-solicits survive for employees earning over $67,500.

New York: Expanding Restrictions

Proposed legislation would ban most non-competes. As of 2026, courts narrowly enforce: 1 year, narrow geography, signed with legitimate consideration.

Illinois: Salary Thresholds

Freedom to Work Act: non-competes void for anyone earning under $75,000 (escalates annually). Non-solicits void under $45,000.

What Usually Holds Up Everywhere

Even in reform states, these survive:

1. Customer non-solicits with 12-month duration covering customers the rep actually sold to
2. Employee non-solicits ("no poaching") with 12-month duration
3. Confidentiality agreements on pricing, customer lists, proprietary training materials
4. Trade secret claims if the rep takes documented confidential info

Consideration: The Thing Owners Forget

A non-compete signed after hire without new consideration is void in many states. If you want to add a non-compete to an existing rep, you must give something: sign-on bonus ($1,000 to $5,000), territory expansion, raise, equity. "Continued employment" does not count in most jurisdictions.

Realistic Agreement Template

Rather than a maximalist non-compete that will not hold up, write a focused agreement:

• 12-month customer non-solicit covering homeowners the rep contacted during employment
• 12-month employee non-solicit covering current employees
• 24-month confidentiality on pricing formulas, supplier terms, commission plans
• Return of all company property within 48 hours of separation

This holds up in 45+ states and covers the actual risk: the rep taking your customer list and poaching your crew.

What You Cannot Stop

A rep leaving to go sell for a competitor in the same city. In most states, you cannot legally stop this. What you can do:

• Stop them from calling your specific customers for 12 months
• Stop them from recruiting your specific reps for 12 months
• Stop them from using your proprietary materials
• Make them pay damages if they use trade secrets

If your whole retention strategy is "they legally cannot leave," you have already lost. See our culture guide.

When to Actually Sue

Three scenarios justify the $15k to $40k in legal fees to enforce a non-solicit:

1. Rep took a customer list (documented: email forwarding, download logs, pipeline exports)
2. Rep recruited 3+ of your current reps within 90 days of leaving
3. Rep is poaching deals in active pipeline (specific customers, named)

Filing a breach of contract suit without evidence gets dismissed and embarrasses you. Invest in documentation before you invest in litigation.

RoofKnockers and Audit Trails

If you ever need to prove a rep accessed customer records, exported data, or reassigned leads to an outside account, the audit log shows it. RoofKnockers keeps that evidence without you having to build your own monitoring. See pricing.

FAQ

Can we make a new hire sign a 3-year non-compete?

You can make them sign it, but most courts will reduce it to 1 year or void it entirely.

Do independent contractors have the same rules?

Similar in most states, but 1099 reps get even more latitude. Consult an employment lawyer in your state.

Can we enforce a non-compete if we fired the rep?

Depends on state. Illinois and Massachusetts generally void the non-compete if the rep was terminated without cause. Florida and Texas still enforce.